Boeing (BA) -) posted a wider-than-expected third quarter loss Wednesday, which paring its full-year target for 737 Max deliveries, but noted its on track to meet its free cash flow forecasts amid booming aircraft demand.
Boeing, which has reported only one profitable quarter over the past three years, said its adjusted core loss for the three months ending in September was pegged at $3.26 per share, narrowing from the $6.18 per share loss it reported over the same period last year but outside the Street consensus forecast of $2.96 per share.
Group revenues, Boeing said, rose 13.4% from last year to $18.1 billion, a tally that narrowly topped analysts' forecasts of an $18.01 billion tally.
Boeing delivered 105 aircraft to customers over the three months ending in September, the company said, including 27 jets in the month of September alone. However, deliveries of is 737 Max aircraft, the popular narrowbody jet, slowed to the lowest levels since August of 2021
Adjusted free cash flow was pegged at -$310 million for the quarter, however, and Boeing reiterated its full-year forecast of a total between $3 billion and $5 billion. It also sees 787 production rising to 5 planes per month by the end of the year.
However, it trimmed its 737 Max delivery target to a full-year tally of between 375 and 400, down from its prior estimate of between 400 and 450, owing an existing defect in the workhorse aircraft. So far this year, Boeing has delivered 286 733 planes, including 70 over the third quarter.
"We continue to progress in our recovery and despite near-term challenges, we remain on track to meet the financial goals we set for this year and for the long term," said CEO Dave Calhoun. "We are focused on driving stability in our supply chain and improving operational performance as we steadily increase production rates to meet strong demand."
"The important work we're doing to add rigor around our quality systems and build a culture of transparently bringing forward any issue, no matter the size, can bring short-term challenges – but it is how we set ourselves on the right course for our long-term future, " he added. "Leading with safety, quality and transparency, we will continue to restore our operational and financial strength."
Boeing shares were marked 2.3% lower in early Wednesday trading immediately following the earnings release to change hands at $178.24 each.
Boeing's overall order book grew by 224 plans, with just 10 cancellations, over the third quarter with sales including 150 737 Max jets to European discount carrier Ryanair as part of a $40 billion commitment announced earlier this year and 50 787 Dreamliners to United Airlines UAL amid a massive bet on the strength of the post-pandemic rebound in global travel.
Looking to the longer term, Ryanair has said it would buy as many as 300 737 Max jets, which carry a list price of around $40 billion if the deal is filled to completion, with deliveries phased between 2027 and 2033.
The group's overall order book now stands at 5,172 planes, the highest since December of 2019, heading into its third quarter earnings report on October 25.
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